Tokenization
Also known as: Asset Tokenization
The process of converting rights to an asset into a digital token on a blockchain.
Tokenization is the creation of digital tokens on a blockchain that represent ownership or usage rights of real or virtual assets. The process involves encoding asset attributes into smart contracts, enabling programmable control, fractional ownership, and transparent transferability. Tokenization applies to securities, real estate, intellectual property, art, and more—bridging real-world and digital economies. It enhances liquidity, accessibility, and automation, though it must align with legal frameworks and compliance requirements.